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pshakkottai commented on the blog post Our Unsustainable Higher Education System
The solution is this option not even considered by any one.
How about “deficit funding” to support all infrastructure because a monetarily sovereign govt is not limited to spend only what it collects and all deficits become private sector wealth? See
http://my.firedoglake.com/pshakkottai/2012/04/20/misunderstood-deficits/Deficit funding can pay for everything.
http://rodgermmitchell.wordpress.com/2012/03/22/monetary-sovereignty-for-young-people/
http://rodgermmitchell.wordpress.com/2011/12/24/why-federal-debt-is-not-debt-and-federal-borrowing-is-not-borrowing/
USA creates money and does not need to spend less than taxes collected but can deficit spend to its hearts content. All deficits become private savings and paying the national debt is a nonsensical concept supported only by propaganda. For proof see
http://pshakkottai.wordpress.com/2012/02/27/national-debt-and-national-wealth-compared/
http://pshakkottai.wordpress.com/2012/03/30/another-proof-of-mmt-4/
and for details see
http://pshakkottai.wordpress.com/2012/02/26/misunderstood-deficits/
I quote from Mitchell: There is no deficit problem. There is no debt problem. The whole charade is based on “Anthropomorphic Economics Disease,” the false belief that federal financing is just like yours and mine. But, federal “deficits,” “debt” and “borrowing” are entirely different from your deficits, debt and borrowing — not even close. Visualize astronomers basing their hypotheses on the astrological signs, and you’ll get the idea.” from
http://rodgermmitchell.wordpress.com/2011/03/08/economic-ignorance-unquestioned-by-the-media-politicians-mainstream-economists-and-the-public-where-is-the-outrage/USA is very rich and can afford it. The average wealth is 60 trillion / 300 million = $ 200,000 per capita, not distributed evenly by any means. The GDP per capita is 15 trillion / 300 million = $ 50,000 per capita.
Here is a break down as to who is attending school (all stats are as of 2007):Males enrolled: 7.8 million
Females enrolled: 10.4 million
Full time students: 11.3 million
Part time students: 6.9 million
Students aged 25+: 6.6 million
Undergrads: 15.6 million
Grad students: 2.3 million
If free tuition is offered to 20 million students it would cost 50,000*20,000,000 =1 trillion for 4 years.This would provide a strong educated workforce and a strong democracy which is not easily fooled by mainstream propaganda by its masters, the plutocracy. -
pshakkottai commented on the blog post Glass-Steagall or Bank Size? Why Not Both, And More?
“All bank problems boil down to the profit motive. Rather than breaking up the TBTF banks into smaller, (hopefully) more controllable pieces, we should eliminate their fundamental problem, the profit motive. And, what better way to eliminate the profit motive, than to put banks under total government control, i.e. ownership?” says Mitchell in
http://rodgermmitchell.wordpress.com/2012/03/31/the-end-of-private-banking-why-the-federal-government-should-own-all-banks/ -
pshakkottai commented on the diary post Unemployment: Why. by Alan Grayson.
The 1% have created the myth that govt debt is unsustainable and has to be paid back essentially fooling people to think that the govt budget is similar to household budgets. The biggest problem in public analysis is the economic illiteracy of mainstream media, congress, president and neo-liberal economists who confuse (deliberately?) the budgets of [...]
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pshakkottai commented on the diary post Reich’s case for reform only emboldens the 1% by GA_spoken.
This is what the Indian constitution is based on. WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC and to secure to all its citizens: JUSTICE, social, economic and political; LIBERTY of thought, expression, belief, faith and worship; EQUALITY of status and of opportunity; and to [...]
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pshakkottai commented on the diary post Brooks Does the Big Lie on Stimulus (with no shame) by Dean Baker.
The deficit was too small. The only way to do the deficit spending is to continue it in increments of 800 billion till the economy has zero unemployment. The debt limit debate was because of economic ignorance (unless it was deliberate). A monetarily sovereign economy can deficit spend without limit and taxes do not constrain [...]
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pshakkottai commented on the diary post Another Fine Day for “Innovative” Market-based Solutions by Peterr.
http://rodgermmitchell.wordpress.com/2012/04/01/the-myth-of-private-enterprise-superiority-reduced-government-and-ronald-reagan/ is an interesting blog where he says “I personally am glad the government runs Social Security and Medicare. I’d hate to see those programs left to private sector insurance companies (i.e., eliminate the programs). And, while Medicare supplements and Medicare Part D involve private insurers, they follow strict rules set up by the government. [...]
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pshakkottai commented on the blog post The Roundup for April 22, 2012
Tuesday, February 28, 2012
Michael Hudson: 2,181 Italians Pack a Sports Arena to Learn Modern Monetary Theory – The Economy Doesn’t Need to Suffer Neoliberal AusterityBy Michael Hudson, a research professor of Economics at University of Missouri, Kansas City and a research associate at the Levy Economics Institute of Bard College
http://www.nakedcapitalism.com/2012/02/michael-hudson-2181-italians-pack-a-sports-arena-to-learn-modern-monetary-theory-%E2%80%93-the-economy-doesn%E2%80%99t-need-to-suffer-neoliberal-austerity.html
This is GOOD NEWS! MMT is catching on. -
pshakkottai commented on the blog post Europe Begins to Wonder About Austerity: Are We Doing This Wrong?
Tuesday, February 28, 2012
Michael Hudson: 2,181 Italians Pack a Sports Arena to Learn Modern Monetary Theory – The Economy Doesn’t Need to Suffer Neoliberal AusterityBy Michael Hudson, a research professor of Economics at University of Missouri, Kansas City and a research associate at the Levy Economics Institute of Bard College
http://www.nakedcapitalism.com/2012/02/michael-hudson-2181-italians-pack-a-sports-arena-to-learn-modern-monetary-theory-%E2%80%93-the-economy-doesn%E2%80%99t-need-to-suffer-neoliberal-austerity.html
This is GOOD NEWS! MMT is catching on. -
pshakkottai commented on the diary post The Insanity Isn’t the Deficit Spending; It’s Claiming That the Government’s Budget Is Like a Household Budget! by letsgetitdone.
You do not need coins. A few key strokes will do. I quote Mitchell: ” Federal Borrowing + Federal Taxing Dollars destroyed What??! The federal government destroys all that tax money you and your parents send it?? And the government even destroys all the money it borrows?? That’s right. All dollars going to the federal [...]
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pshakkottai commented on the diary post Social Security news and views by ubetchaiam.
I agree with you.
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pshakkottai commented on the diary post Social Security news and views by ubetchaiam.
I am posting this from my comment on Huffington post. “Why was this limit placed on Social Security and Medicare? Both programs were created when the U.S. government was monetarily non-sovereign. So, Congress needed to be convinced these two programs wouldn’t cost anything, and that these two programs were like private insurance policies, in which [...]
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pshakkottai commented on the diary post The Insanity Isn’t the Deficit Spending; It’s Claiming That the Government’s Budget Is Like a Household Budget! by letsgetitdone.
I have more details on MMT in my blog
http://my.firedoglake.com/pshakkottai/2012/04/20/misunderstood-deficits/ -
pshakkottai commented on the diary post Misunderstood Deficits by pshakkottai.
Yes.
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pshakkottai commented on the diary post Misunderstood Deficits by pshakkottai.
The present system appears to hide the fact that USA is monetarily sovereign. All this borrowing from the federal reserve mimics the old gold standard for no good reason.The debt ceiling is totally contrary to MMT. Dollar is merely a token to make transactions easier than barter. USA can create any amount needed to serve [...]
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pshakkottai commented on the diary post Misunderstood Deficits by pshakkottai.
They could do that in stages. Here is another proposal “Mansoor Kahn’s concept with no federal reserve: http://seekingalpha.com/article/209386-modern-monetary-system-there-is-another-way to get rid of fractional reserve banking (which produces uncontrolled money leading to corruption of democracy) by separating the functions of storage, money creation and commercial risky banking. He suggests : a) Remove government bank deposit protection [...]
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pshakkottai commented on the diary post Misunderstood Deficits by pshakkottai.
I agree that banks produce most of the money by fractional reserve and federal govt creates a small part of it. The federal reserve is unnecessary and could be apart of the treasury and could fund projects directly (as India does)without the fiction of borrowing from itself and offering T securities. The money created by [...]
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pshakkottai commented on the diary post Misunderstood Deficits by pshakkottai.
Yes. The x axis is the cumulative sum of T securities, savings bonds, other treasury and agency backed Govt supported enterprises (which are components of govt debt) adjusted for inflation in billion dollars. The y axis is the national wealth in the same units in
http://pshakkottai.wordpress.com/2012/02/27/national-debt-and-national-wealth-compared/ -
pshakkottai wrote a new diary post: Misunderstood Deficits
Bushido, the warrior code says: 1. Think of what is right and true. 2. Put the science into practice. 3. Become acquainted with the arts. 4. Understand the negative and positive qualities in everything. 5. Learn to see everything accurately. 6. Become aware of what is not obvious. 7. Be careful even in small matters. 8. [...]
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pshakkottai commented on the diary post Affordable Care Act: Good-Bye Terrible Twos by Thomas P. Davis.
I agree. See also
http://patriceayme.wordpress.com/2012/03/19/money-does-not-care/ -
pshakkottai commented on the diary post Good evening ladies and gentlemen my name is YJ Draiman and I am a candidate for Mayor of Los Angeles. by Draiman for Mayor.
California having its own state owned bank(based on the North Dakota Model) can help. Gross state product = $2 Trillion(2010). http://en.wikipedia.org/wiki/Economy_of_California If all this money goes through the State Bank (as it does in north Dakota by fiat) Ca will have access to approximately 6% of GSP which is (12/100)1000 billion = $120 billion. This [...]
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